Journey to the Cloud. Jeff Hoehing, Principal Consultant

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1 Journey to the Cloud Jeff Hoehing, Principal Consultant

2 Agenda! Industry/Business Trends! Cloud and DR in the Cloud! Verizon Terremark Overview! Q&A

3 The World in which we Operate has Changed Consumerization of IT blending use of technology at work and personal space Increasing speed of business Business is mobile and operates 24x7 Global economic volatility requires IT to be nimble fast Service is a key differentiator great products are no longer good enough Customers expect IT to be easy Flexible and Asset lite IT investments Buy vs. Build / On-Premise vs. Off-Premise Are we in-sync with the our business customers and our industry?

4 Cloud is a reality. of all enterprises in 2013 will use some form of cloud computing for scale flexibility and cost reduction. Network World, Gartner Top 10 Emerging Infrastructure Trends, June 5, 2012 Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4

5 Mobile is the new business as usual. of employees use at least two mobile devices for work on a daily basis. Forrester Research, Inc. Benchmarking Your Enterprise Mobile Device Operations Initiatives and Plans, October 10, 2012 Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5

6 It s the Internet of things. will be connected on the web by 2020, changing the way we live and do business. Forbes, Gartner Top 10 Strategic Technology Trends, October 23, 2012 Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6

7 Fundamental Shift in IT Mainframe Internet Client/Server Server Virtualization Cloud Computing Cloud services fundamentally shift how IT is delivered and consumed.

8 Business Trends Cloud Adoption Grows - In 2013, 60% of all enterprises will have adopted some form of cloud computing Three Main Reasons Businesses are Choosing Cloud - To control IT costs - Build and deploy applications quickly - Easily expand the size and scale of their infrastructure Cloud Enables Context-Aware Apps - Enterprise Applications, CRM, ERP etc are rapidly moving to software-as a-service (SaaS) model. - 50% of all enterprises will adopt a SaaS strategy by 2015.

9 Business Trends Security is a Barrier - 48% of enterprises are concerned with security defects in existing cloud technologies. - 50% worry that cloud computing will lead to unauthorized access to customer information. - 43% worry about leaks of proprietary company data

10 Line of Business Demands The question organizations must ask now is, not if, but how they should use cloud services. Often driven by LOB demands, companies are increasing the number of applications they have placed in the cloud. In 2011 the average number was three, by 2012 that number was five, and it s expected to double over the next two years. Frost & Sullivan, 2013

11 Cloud Based Service Models Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS)

12 IAAS: Bringing IT and the LOBS Closer Key drivers of IaaS adoption» Decreasing costs» Strengthening Business Continuity Plans» Preparing for Disaster Recovery» Scalability Benefits of IaaS» Agility, speed and innovation» Renewed focus on core competencies» Leaner business models Big Data IaaS provides foundation for data analytics» Storage of data» Analysis of that data to make business decisions

13 Tenants of Cloud Computing Secure Must be logically separated, monitored and administered to reduce business risk and remove deployment barriers. Reliable Increase uptime, balance traffic loads, predict bottlenecks. Performance equal to or better than traditional models. Flexible Easy to enter and Exit agreements. Improve provisioning cycles Scalable Capacity on demand Transparent Easily viewable performance and cost metrics.

14 Infrastructure as a Service Private-Public-Hybrid Options Private Cloud Public Cloud Operated for one organization Low total cost of ownership Greater control over security, compliance, QoS Easier integration Typically within the firewall Hybrid Cloud One or more interoperable clouds, supporting portability Leveraging existing assets and applications Use public environment as needed Must maintain security and compliance Internet-accessible for general consumption Low acquisition costs Less administrative burden On-demand capacity Each provider offers varying levels of functionality, security and management

15 Determine Cloud Services Delivery Model Traditional on-premises model will continue to exist under pressure to be significantly more efficient Public Cloud Pressure for cost efficiency creates opportunity for private cloud enablement Hybrid environments will be the enterprise deployment model through 2014 Private Cloud Corporate security and governance are required in all delivery models!

16 Security Concerns #1 stated concern with Cloud Computing adoption Confidential and proprietary materials for authorized Terremark personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

17 Security in the Cloud Security is the leading inhibitor to cloud services adoption: Protecting the Brand and Investments Maintaining regulatory compliance Must carry forward security levels of internal IT Authentication Volume of Security Threats Grows Understanding the scale of security events requires knowledge ü Threats ü Vulnerabilities ü Assets ü Design Must be comprehensive in approach: Physical Logical Authentication Encryption Inspection Governance Logical Physical Governance Inspection Encryption

18 The Gap in Traditional DR services Seconds Data Loss Synchronous Replication Recovery objectives Minutes Hours Days Asynchronous Replication Recovery from tape Gap Recovery from disk Cold Sites Shared IT equipment Hot Sites, Warm Sites Dedicated IT equipment This gap can be filled with virtualized and cloud solutions $ $$ $$$$ Forrester DR services cost

19 Disaster Recovery Drives Cloud and IaaS Adoption "How important was improved disaster recovery and business continuity in your firm s decision to adopt cloud computing IaaS?" 5 = Very important 4 29% 32% 3 22% 2 11% 1 = Not Important 5% Don't know/does not apply 1% Base: 650 server, storage, or data center decision-makers at North American and European enterprises Source: Forrester's Technology Forrsights For Hardware, Q3 2011

20 Cloud-based DR can be Defined in Three Categories Cloud-based DR Do it yourself cloud-based DR Using the public cloud to architect a custom solution leveraging the agility and speed of the cloud. Cloud-to-cloud DR The ability to failover services from one cloud data center to another DR-as-a- Service Pre-packaged solutions that provide failover to a cloud environment

21 Two-Thirds of Companies Show Interest in DR-asa-service What are your firm s plans to adopt IT-recovery-as-a-service based on virtual infrastructure at the service provider? Expanding/upgrading implementation Implemented, not expanding Planning to implement in the next 12 months Planning to implement in a year or more 5% 6% 6% 9% Interested but no plans Not interested 35% 34% Don't know 5% Base: 650 server, storage, or data center decision-makers at North American and European enterprises Source: Forrester's Technology Forrsights For Hardware, Q3 2011

22 Like on-premise DR, Recovery Sites Vary in Temperature $$$ Hot cloud site: Recovery cloud is running replica VMs to production site using real-time replication. o Recovery time objective (RTO) : 0-2 hours o Recovery point objective (RPO): 0-24 hours Warm cloud site: Recovery cloud contains offline copies of virtual machines that can be spun up during disasters or tests. o RTO: 2-6 hours o RPO: 0-24 hours $ Cold cloud site: Recovery cloud contains backups of production systems that must be first rehydrated and turned into VMs before recovery can occur. o RTO: 4-24 hours o RPO: hours

23 Benefits of cloud-based DR Better functionality for less cost Easier, more frequent, and less expensive testing. More flexible short-term contracts with fast time to market Pay-as-you-go pricing. Most of the time, you essentially only pay for storage resources, turning on VMs only in the event of a disaster invocation or a test Little to no upfront investment is required Testing can be automated and non-disruptive. DRaaS contracts usually include testing services and failover assistance Gives you the ability to adapt to changing IT environment and business needs. On-demand pay-per-use resource that removes the initial investment costs and inflexible contractual agreements, while still delivering recovery capabilities

24 As with any Cloud-Based Approach, There are Significant Benefits From: Speed to market Cloud solutions can be deployed in a matter of weeks, versus on-premise solutions that take months to years Economies of scale Cloud providers have massive environments that allows them to drive down their infrastructure costs Agility of cloud providers Cloud providers are constantly expanding and adding additional capacity so you don t have to worry about the ability to expand Ability to leverage the core expertise of the provider The core competency of a cloud service provider is to deliver infrastructure services quickly and efficiently

25 Gartner Magic Quadrant CLOUD & IAAS MANAGED HOSTING MANAGED SECURITY Gartner Inc., Magic Quadrant for MSSPs, North America by Kelly Kavanagh, John Pescatore Novemeber 2011 The full report can be accessed at: This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Verizon Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

26 Verizon Terremark Services Portfolio Enterprise Class Platform» Compliant» High performance» Global presence Highly Secure» Architecture» Assessment» Response Relevant and Accessible» Integration» Interoperability» Enablement

27 Infrastructure Services PorEolio CollocaFon datacenter and network services Enterprise Cloud self- service uflity compufng Managed HosFng O/S and infrastructure management Highly Managed HosFng custom applicafon management 27

28 Enterprise Cloud Enterprise Cloud Virtual Private Cloud architecture Powered by VMware vsphere Private compute pools guarantee resources Burst mode for dynamic scale Secure, auditable and compliant Physical device integrafon Private network integrafon Full- featured RESTful API Available as dedicated private cloud vcloud Services vcloud Express vcloud Datacenter Private/hybrid solufon vcloud API compafble

29 Cloud Consulting Professional Services Cloud Readiness Assessment Assessing readiness of a customer and their applications to move to the cloud Cloud Security Readiness Enabling a secure migration to the cloud ASSESS SECURE Assess technical feasibility of the application(s) moving Define business value of the application(s) Identify risks associated with the application(s) Gather application security requirements Identify any compliance constraints Define cloud security parameters for the applications In scope Cloud Identity Assessment Helping customers assess their identity and privacy needs ACCESS Highlight access and privacy needs Assess business, compliance, process and technical impact on IAM when adopting cloud services

30 Service Overview Terremark s Virtualized Disaster Recovery (VDR)! Disaster Recovery as a Service, providing compute, network and storage resources on demand at a secondary location! Replicates data, operating systems and applications from any production environment into a securely managed cloud environment in a top tier Terremark data center! Terremark-managed failover to a production-ready environment in the event of a catastrophic outage at their primary facility Disaster Recovery is the #2 priority for IT decision makers. Over 60% want DR capabilities and over 90% will have budget (30% have increased budget year over year).

31 ERASE BOUNDARIES BETWEEN DATA AND PEOPLE Build new capabilities fast. Get to market sooner. Generate new revenue streams. Make smarter decisions. Handle a 400% increase in demand. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 31

32 INCORPORATE MACHINE DATA INTO BUSINESS DECISIONS Monitor and control operations remotely. Make better decisions with real-time data. Automate key business processes. Develop new products and business models. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 32

33 VERIZON LEADS IN CLOUD INFRASTRUCTURE AND SERVICES FLEXIBLE COST-EFFECTIVE SECURE Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 33

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